Cole v. Duncan

This was a bill to foreclose a mortgage. The defendant pleaded a discharge in. bankruptcy, under the bankrupt law of 1868. The court held the plea sufficient, and dismissed the bill.

It is insisted by the counsel for appellee, where a mortgagor goes into bankruptcy, the mortgagee must avail himself of section 20 of the Bankrupt Act, and have his lien adjudicated in the court having jurisdiction of the bankruptcy. This position is wholly untenable. That portion of section 20 of the act, applicable to this subject, reads as follows:

“When the creditor has a mortgage or pledge of real or personal…